PETRONAS signs PSCs for nine exploration blocks under MBR 2022

Malaysia Bid Round 2023 offers 10 exploration blocks and two clusters of Discovered Resource Opportunities (DRO).

KUALA LUMPUR: Petroliam Nasional Bhd (PETRONAS) has signed production sharing contracts (PSCs) for nine exploration blocks marketed under Malaysia Bid Round 2022 (MBR) with an investment amounting RM1.7 billion in exploration drilling capital, particularly in the deepwater areas and the underexplored formations.

The PSC partners for the nine exploration blocks include Petronas Carigali Sdn Bhd (PCSB) and E&P Malaysia Venture Sdn Bhd (EPMV) for Block PM327; Skye UMDP Exploration Bhd and PCSB for Block PM340; PCSB, PTTEP Sarawak Oil Limited and Petroleum Sarawak EP (PSEP) for Block SK325; and Sarawak Shell Bhd, PCSB and PSEP for Block 3B.

"The signings of the exploration PSCs today and the three discovered resource opportunities (DRO) clusters PSCs signed last month represent the highest number of PSC awarded in Malaysia within a single year since 2010.

"The first of the nine PSCs signed today also marks the 200th PSC awarded by Petronas since the maiden PSC signed in 1976,” senior vice president, Malaysia Petroleum Management (MPM) at Petronas, Mohamed Firouz Asnan said in a statement today.

He said the company look forward to working very closely with its newly signed PSC partners in discovering new molecules so that together, it would grow and create value in a sustainable manner.

According to Petronas, the award of these nine blocks has also reduced the number of Malaysia’s open blocks by about a third, in line with MPM’s efforts to increase exploration investments in the country.

It said the PSCs were signed by Mohamed Firouz, in the presence of executive vice president and chief executive officer of upstream Datuk Adif Zulkifli.

Meanwhile, Petronas said it has also launched the MBR 2023, offering 10 exploration blocks located within the producing Malay, Sabah and Sarawak basins as well as the newly opened Penyu basin and two clusters of DRO.

It said these blocks covered various geological play settings with sizeable prospects to be explored, providing opportunities for investors looking for "Advantaged Energy” which is low-cost, low-carbon energy.

Petronas said the two clusters of DRO offered are Chenang off the coast of Peninsular Malaysia and Bambazon off the coast of Sabah.

It said these are shallow water clusters located close to existing producing hubs that would enable quick monetisation.

Mohamed Firouz said Petronas continued to shape the exploration and development strategies to unlock the full potential of Malaysia’s exploration and production by promoting investments in focused areas to deliver the "Advantaged Energy” required by its customers.

"We continue to provide opportunities to companies with distinctive capabilities, opportunities that are accompanied by the right fiscal terms to maximise shareholder returns for both host authority and investors,” he added.

Themed "Winning the Energy Transition with our Advantaged Energy”, MBR 2023 saw the participation of more than 50 oil and gas companies s well as government agencies, foreign trade attaches and energy market consultants. - Bernama

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